Lin Vu has $100,000 in an investment paying 9 percent taxable interest per annum. Each year Vu incurs $825 of expenses relating tothis investment. Compute Vu's annual net cash flow assuming the following:Required:a. Vu's marginal tax rate is 10 percent, and the annual expense is not deductible.b. Vu's marginal tax rate is 35 percent, and the annual expense is deductible.c. Vu's marginal tax rate is 25 percent, and the annual expense is not deductible.d. Vu's marginal tax rate is 40 percent, and only $500 of the annual expense is deductible.Note: For all requirements, round your intermediate calculations to the nearest whole dollar amount.Answer is complete but not entirely correct.Not cash flowb. Net cash flow$c. Net cash flow$d. Net cash flow$Amount

Answered: Lin Vu has $100,000 in an investment…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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MR. MAGBITANG MADE A MONEY MARKET PLACEMENT OF P100,000,000 FOR 30 DAYS AT 12% PER YEAR. IF THE WITHHOLDING TAX IS 20%. WHAT IS THE NET INTEREST THAT MR. MAGBITANG WILL RECEIVE AT THE END OF THE MONTH? a. P800,100.00 O b. P800,000.00 O c. P800,600.00 O d. P600,000.00
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